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Mining exports from Peru to grow $15 billion due to investments in new projects and expansions

Posted on 13 Sep 2012

speider.jpgThe National Society of Mining, Oil and Energy (SNMPE) estimates that Peru has mining projects with approved environmental impact assessments and expansions of mining units that will require an investment of $27.27 billion for the next five years. Pedro Martínez, President of SNMPE, said that according to the study, carried out by the Peruvian Economy Institute, “The effect mining would have over employment, product and tax collection in Peru if the projects are executed,” is that 1,163,000 new jobs would be generated, equalling more than a third of the jobs created during the last decade in the country.He indicated that from the total of new jobs that would be generated by the mining investment portfolio estimated in $27.27 billion; about 10% would be directly related to the mining sector and over a million to other productive activities.

“In 1994, per every mining job, four other jobs were generated in other sectors; however, the productive scheme observed in 2007 shows that nine new jobs are created per every mining job. This reflects the important productive dynamism that mining drives in Peru”, Martínez commented.

IPE’s study also shows that if the expansion projects of the mining units are executed, as well as those projects with already approved environmental impact assessments to exploit newly discovered deposits, mining exports would increase by about $15 billion. In 2011, mining exports reached $27.36 billion.

In turn, SNMPE’s President commented that if this mining investment portfolio comes through, the Peruvian State will receive additional revenues of over S/.10 billion annually. He also indicated that tax revenues from mining amounted to S/. 11.25 billion in 2011.

Finally, Martínez said that the study carried out by the Peruvian Economy Institute demonstrates, on a technical basis, the increase of the interrelation of the mining sector with the rest of the country’s economy.

In this regard, he also said that any decision, measure and/or action taken that could affect the commissioning of the mining projects should be thoroughly thought through, because Peru cannot afford the luxury of losing investment opportunities and endanger its sustained economic growth.